5/2 Hillary: Let's cut gas tax!
Blue Collar: Yay!
McCain: Let's cut gas tax!
\_ McCain proposed it, Hillary agreed.
Blue Collar: Yay!
Obama: Gas tax break will increase demand and the cost of gasoline
in the long run. Besides, it is not sustainable and not
a long term solution.
\- For an short term inelastic demand good, the price will
be set by the demand, and if you drap the tax, that
will convert consumer surplus into windfall profits.
http://en.wikipedia.org/wiki/Tax_incidence
This is like an Econ 1 midterm question.
\_ What about if demand is elastic?
\- a full discusson of this is beyond the scope
of the motd. a fuller discussion involves
questions of "is it movement along the demand
curve" or "is it a shift of the agg demand curve".
also the view w.r.t. to oil is supply is also
constrained due to refining capacity being maxed
out, but this is complicated by the possibility
of drawing down inventory stocks. but what really
makes this complicated is the "clean theory"
assums competive markets [prce takers, marginal
cost pricing]. the theory of monopol is also
"clean" but the world we are probably in w.r.t.
to oil is oligopoly ... and that isnt a "clean"
theory ... anyway, let's leave it at that.
Big Oil: We'll just raise your cost to match whatever price difference
the temporary lack of tax would create, and pocket the
the money. HA
Blue Collar: FUCK YOU!
\_ I think you underestimate the Blue Collar in this country. -raised BC
\_ I think you underestimate the Blue Collar in this country. -raised
BC
\_ Vote for GEORGE W BUSH! PATRIOTISM, SERVE OUR COUNTRY! -BC
\_ That was BC in 2002. What do you think it is like today?
\_ McCain served in the armed forces and was patriotic.
VOTE FOR MCCAIN, FIGHT TERRORISTS! -BC
\_ Kerry had a rather more distinguished record of service
compared to Bush, and look how that went.
\_ SWIFT BOAT LIES! -BC
\_ No, now it is more like MY GAS COSTS TOO MUCH. @#$%! BUSH
\_ No, now it is more like MY GAS COSTS TOO MUCH.
@#$%! BUSH
AND ALL THOSE POLITICIANS IN DC!
\_ The gas companies don't care what the tax rate is. There is more
gasoline sitting in storage in the US right now than there has been
for years. Current prices have little to do with the gas tax or
a healthy functioning market. For starters, states like CA should
get together with nearby states and use the same formula for gas.
That would create a larger market of the same product and yield
a more stable price as well as lower prices over all. Strengthen
the dollar. Since oil prices are effectively keyed to the value
of the dollar, as the dollar decreases oil prices *must* increase.
This isn't even Econ 1 type stuff.
\- Hillary Clinton has decided to ignore "so called experts"
and "history" and "the facts" ... 'cause she's The Deciderette.
Hmm, now who does that sound like? "Trust me ... I'm experienced,
compassonate, tough, have what it takes, can swiftboat somebody
when I need to ..."
http://delong.typepad.com/sdj/2008/05/friends-dont-le.html
http://delong.typepad.com/sdj/2008/05/expertise.html
http://delong.typepad.com/sdj/2008/05/i-think-paul-kr.html |
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